2023 (4) TMI 417 - HC - Income Tax

Additions u/s 68 - assessment u/s 153A - substantial question of law - Additions towards investment into share capital on the strength of the documents found at the resident of the Director of petitioner/Company. - AO treated this as unaccounted money of Directors utilized by the Directors of assessee/company to get shares capital accommodation entry from these to investors company at Mumbai. - HELD THAT - After having gone through the order of Assessing Officer, CIT(A) and the Tribunal, this Court is of the view that the entire findings of Assessing Officer as well as the Tribunal are based on facts which do not appear to give rise to any substantial question of law, in the absence of which the appeal under Section 260A of the IT Act cannot be entertained. Decided against the assessee.

Summary

Issues involved:
The appeal under Section 260 A of the Income Tax Act challenging the final order of the Income Tax Appellate Tribunal regarding the assessment order for the year 2005-2006.

Issue I:
The Tribunal's conclusion based on suspicion regarding the transfer of shares at a low price was challenged for lack of evidence to support the assumption.

The principal contention was whether the Assessing Officer can base his conclusion on presumption and surmise in the absence of cogent evidence/material.

Issue II:
The finding of the Tribunal that the share capital investment is not genuine was disputed, citing voluminous documentary evidence and the lack of material to support the Tribunal's conclusion.

Issue III:
The justification of making the assessment under Section 153C of the Act without a search in the office or premises of the appellant was questioned in the given circumstances.

Issue IV:
The addition made in the hands of the company for transactions entered into by the Directors in their personal capacity was challenged, questioning the legality of such addition under the provisions of the Act.

The Tribunal's detailed reasoned order included findings related to the transactions of share transfer, off-market transactions, genuineness of transactions, burden of proof on the assessee, and the rejection of cross objections.

After reviewing the orders of the Assessing Officer, CIT(A), and the Tribunal, the Court concluded that no substantial question of law arose from the facts presented, leading to the dismissal of the appeal under Section 260A of the IT Act.